The Brattle Group has expertise in the proper techniques for valuing both physical and intangible assets in the petroleum and natural gas industries for royalty and tax purposes. Our engagements have included determination of the fair value of oil and gas taken from the ground, assessment of the appropriate tariff rates for transportation services, and evaluation of the value of petroleum products in end markets. As an example among many such cases, for an Australian client we developed a methodology for the valuation of pipeline and processing assets for purposes of calculating the Petroleum Resource Rent Tax in Australia. We have also assisted Australian clients with netback calculations for royalties.
On behalf of two major oil companies involved in an international royalty arbitration, The Brattle Group provided expert testimony concerning the proper valuation of hydrocarbons using a netback analysis. Similar work has been performed for major producers in litigation regarding royalties associated with Alaska North Slope hydrocarbon production.
The Brattle Group assessed the appropriate price levels of crude oil production by constructing values of crude oil after transportation, evaluating crude oil exchange transactions, determining crude oil disposition by market area, estimating appropriate marine, pipeline, and gathering costs and computing the impacts of tax levies and royalty interests.
For an Australian client we developed a methodology for the valuation of pipeline and processing assets for purposes of calculating the Petroleum Resource Rent Tax in Australia. We have also assisted Australian clients with netback calculations for royalties.
Complex business and legal matters require intellectually honest and analytically rigorous solutions that are thoughtfully developed and clearly communicated. We apply economic and finance principles with uncompromising quality to achieve clarity in the face of complexity. Independent analysis, responsive execution, and compelling presentation. That’s Brattle. That’s the Power of Economics.